re: 401k Traditional vs Roth 401k vs Post-86

I assume the OP meant he contributed 5k to a Roth IRA (max is 5.5k). I'm not very familiar with the Post 86 option, but basically you're putting after tax money into your 401k.

You'd be better off putting that 1% into traditional (lower taxes) or Roth (no capital gains). If you have reached the 401k limit of 18k, then you could put after tax money up to 54k.

Though I don't know why anyone would do this. The only reason I can think of is if for some reason the 401k is your only investment vehicle with good options.

Maybe there is some tax situation that would make this beneficial, but wouldn't help most people.